1.The items below belong to an income statement.

Operating expenses$390,000

Interest expense30,000

Income taxes 40,000

Miscellaneous expense5,000

Loss on the sale of a capital asset20,000

Gross revenue550,000

a.Using the information above, calculate net farm income from operations.

Net farm Income From Operations= Gross Revenues - Operating and Interest Expenses

$550,000 - ($390,000 + $30,000)=

$550,000-$420,000= $130,000??????

b.Using the information above, calculate net farm income.

Net Farm Income= NFIFO + (gains) losses on the sale of capital assets (Is this correct?)

c. Using the information above, calculate net income.